Business Savings Account

[jmo21]

Recognise Bank easy access savings up to 2.65%

(Definitely Recognise this time, not Shawbrook)

[Eirikur]

Wise give 3.89% interest on their GBP business current account (Not FSA protected though)

[jamesbrown]

3% from Kent Reliance (Easy Access).

[PerfectStorm]

Shawbrook just stepped up to 2.7

[PerfectStorm]

Wise give 3.89% interest on their GBP business current account (Not FSA protected though)

Interesting that they feel they have to compete that much harder than all the other 2.5/2.7% products ... I wonder what it is they feel they have to compensate for? ;-)

That said, it costs money to keep it there too - £45 to set up the account, "from 0.43%" to send money, £3 to even possess a debit card... you probably end up with Aldermore money once it's all done, with potentially some risk too.

[jamesbrown]

Wise is offering a completely different product backed by Blackrock. You should consider it an investment product, albeit "very low risk", not a savings product. Your capital is at risk, quite apart from lack of FSCS protection. In return, you are essentially getting what the debt markets dictate (Treasuries for USD and Gilts for GBP), which is currently a lot more than you get with a comparable business savings account (or was until KR increased their rates to 3%).

[jmo21]

Aldermore up to 2.75%
https://moneyfactscompare.co.uk/busi...ks-first=false

[Paracelsus]

Wise is offering a completely different product backed by Blackrock. You should consider it an investment product, albeit "very low risk", not a savings product. Your capital is at risk, quite apart from lack of FSCS protection. In return, you are essentially getting what the debt markets dictate (Treasuries for USD and Gilts for GBP), which is currently a lot more than you get with a comparable business savings account (or was until KR increased their rates to 3%).

Just looking at this offer myself. I believe the funds themselves *are* protected by the FSCS. So money is not covered only when it's sat lying around in Wise bank account before/after purchasing or selling the fund. I'm just not sure if these funds require changing SIC code/alternate LTD or whether the tax treatment of 'interest' means no need for any of that.

[jamesbrown]

That may be true at the reduced limit of £50k, you’d have to look into it, but safer to assume not. If the amount of interest/income is incidental to your trading income and the capital invested is not a high % of your total reserves, there’s no risk of being classified as a CIHC, which is what you’re wondering, I believe.

[jamesbrown]

BTW, Aldermore Easy Access is up to 3.05% now. Best rate is United Trust Bank base rate tracker at 5%, but they just increased their notice period from 120 to 180 days.